Quebec’s Caisse to sell remaining oil production investments by end of 2022

Caisse de dépôt et placement du Québec says it’ll promote its remaining oil manufacturing investments by the tip of subsequent 12 months as a part of its local weather technique.

The Quebec funding supervisor says its remaining belongings within the sector make up one per cent of its portfolio, or about $3.9 billion based mostly on the scale of its internet belongings as of June 30.

CDPQ made the announcement because it launched its new plan to struggle local weather change.

As a part of the plan, the funding fund says it’ll create a $10-billion transition envelope that may assist assist corporations within the heaviest emitting sectors to cut back their carbon depth.

CDPQ additionally says it plans to carry $54 billion in inexperienced belongings by 2025 and cut back its portfolio’s carbon depth by 60 per cent by 2030 in contrast with 2017.

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“With this new technique, we’re demonstrating our management as buyers and taking the following step in local weather investing,” Caisse CEO Charles Emond stated in an announcement.

“It’s in the very best pursuits of our depositors, our portfolio corporations and the communities by which we make investments.”

READ MORE: Quebec’s Caisse posts 7.7% return in 2020 as real estate underperforms

The pension fund supervisor’s transfer would place it as a local weather chief amongst Canada’s main monetary establishments, stated Shift Motion for Pension Wealth and Planet Well being, a charitable initiative that encourages pension funds to have interaction on the local weather disaster.

“It’s superb that it took till 2021 for a Canadian pension fund to lastly acknowledge that defending our retirement financial savings from the worsening local weather disaster inevitably requires abandoning market publicity to high-risk fossil fuels,” it stated in a information launch.

Shift stated investments in pure gasoline are additionally too dangerous for the local weather and Quebec pensions, and must also be phased out. To restrict world warming, it stated pure gasoline should even be stored within the floor and oil and gasoline manufacturing should be diminished by a median of three per cent per 12 months beginning instantly.

“The CDPQ’s large fossil gasoline infrastructure investments imply that it has not but reckoned with this actuality.”

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Shift stated the Caisse’s dedication to chop its carbon emissions depth are eclipsed in Canada solely by a pledge from the Ontario Academics’ Pension Plan Board.

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Earlier this month, Academics’ pension fund supervisor stated it aimed to slash the carbon emissions depth of its investments by 45 per cent by 2025 and by two-thirds by 2030, in contrast in opposition to its 2019 baseline.

Nonetheless, Shift stated Academics’ has not but defined how its 2030 objective is feasible with out excluding fossil fuels from its portfolio.

“The CDPQ’s progress stands in stark distinction to the Canada Pension Plan, whose CEO stated earlier this 12 months that the Canada Pension Plan has no plans to institute a blanket display on oil and gasoline throughout his tenure.”

© 2021 The Canadian Press | Quebec’s Caisse to promote remaining oil manufacturing investments by finish of 2022


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